• The disposals of € 11,902 thousand of non-goodwill intangible assets related primarily to disposals of software (€ 2,733 thousand), production quotas (€ 3,069 thousand) and other intangible assets (€ 6,051 thousand). The goodwill disposal represented a purchase price adjustment.
• Intangible assets consist largely of goodwill, capitalised in accordance with IFRS 3, that resulted from the acquisition of companies beginning in the 1995|96 financial year. Intangibles also include acquired customer relationships, software, patents and similar rights, as well as non-current prepayments.
• Of the total carrying amount of goodwill, the Sugar segment accounted for € 21,384 thou- sand (prior year: € 21,384 thousand), the Starch segment for € 2,090 thousand (prior year: € 2,090 thousand) and the Fruit segment for € 195,749 thousand (prior year: € 196,806 thousand).
• To satisfy the provisions of IFRS 3 in conjunction with IAS 36 and to allow the calculation of any impairment of goodwill, AGRANA has defined its cash-generating units to match its internal reporting structure. The cash-generating units in the AGRANA Group are the Sugar segment, Starch segment and Fruit segment, consistent with the internal management accounting and reporting processes. All goodwill was allocated to cash-generating units.
• To test for impairment, the carrying amount of each cash-generating unit is measured by allocating to it the corresponding assets and liabilities, inclusive of attributable goodwill and other intan­gible assets. An impairment loss is recognised when the recoverable amount of a cash-generat­ing unit is less than its carrying amount inclusive of goodwill. The recoverable amount is the higher of net realisable value and the present value of future cash flows expected from an asset.
• In testing for impairment, AGRANA uses a discounted cash flow method to determine the value in use of the cash-generating units. The determination of expected cash flows from each cash-generating unit is based on validated business plans that are approved by Supervisory Board committees and have a planning horizon of five years. Projections beyond a five-year horizon are based on the assumption of a constant, inflation-induced growth rate of 0.75% per year (assumption in the prior year: 0.75%). The weighted average cost of capital (WACC) derived from the AGRANA Group’s capital costs is calculated at 9.6% (prior year: 10.6%) for the Fruit segment, at 8.5% (prior year: 9.6%) for the Starch segment and at 8.1% (prior year: 9.5%) for the Sugar segment.
• The quality of the forecast data is frequently tested against actual outcomes with the help of variance analysis. The insights gained are then taken into account during the preparation of the next annual plan. Projections of value in use are highly sensitive to assumptions regarding future local market developments and volume trends. Value in use is therefore ascertained both on the basis of experience and of assumptions that are reviewed with experts for the regional markets.
• Regarding the measurement of value in use of the CGUs, the management of the AGRANA Group is confident that realistic changes in the assumptions for the determination of the recoverable amount of the Group’s CGUs would not lead to an impairment. The excess of the recoverable amount over the carrying amount was € 80 million in the Sugar segment, € 400 million in the Starch segment and € 121 million in the Fruit segment.
• All goodwill reported in the consolidated financial statements was shown to be free of impairment.
• Had the WACC been 1 percentage point higher, no goodwill impairment would have had to be recognised in any of the segments.
• No other intangible assets with indefinite useful lives required recognition at the balance sheet date.

• Additions (i. e., purchases) of intangible assets (other than goodwill) and property, plant and equipment:

• The government assistance in the prior year consisted of grants for plant and equipment in the Starch segment in Austria.
• Currency translation differences are the differences between amounts arising from the translation of the opening balances of foreign Group companies at the exchange rates prevailing at the start and at the end of the reporting period.
• The AGRANA Group, in addition to operating leases, also employs a small number of finance leases. The movement in property, plant and equipment under finance leases was as follows:

• The use of off-balance sheet property, plant and equipment (under operating leases) gives rise to the following obligations under lease, licence and rental agreements:

• Expenses for operating leases, licence and rental agreements were € 10,414 thousand (prior year: € 8,913 thousand).
• The AGRANA Group does not act as a lessor.

¹ Investments in non-consolidated subsidiaries and outside companies, and loan receivables.

The securities were predominantly securities of Austrian issuers.

Amounts owed by affiliated companies represent open accounts with non-consolidated subsidiaries as well as with the Group’s parent – Südzucker AG – and the parent’s subsidiaries.

The net carrying amount of trade receivables after provision for impairment is determined as follows:

The provision for impairment of trade receivables showed the following movements:

The release of part of the provision resulted in interest income of € 16 thousand (prior year: € 36 thousand).

Receivables are as a rule individually reviewed for their collectability and measured on the basis of estimated future cash flows.

Where advance financing is extended to growers, AGRANA receives liens to secure the credit exposure.

The table below provides information on the credit risks in respect of trade receivables. The maturity profile of trade receivables was as follows:

Deferred tax assets were attributable to balance sheet items as follows:

Deferred tax liabilities are detailed in 9.12.

The carrying amount of those inventories measured at fair value less costs to sell was € 3,532 thousand (prior year: € 10,520 thousand).

Write-downs of € 213 thousand were recognised on inventories (prior year: write-downs of € 1,185 thousand).

Securities held as current assets had a carrying amount of € 4,411 thousand (prior year: € 3,515 thousand) and consisted mainly of floating rate debt securities held as a liquidity reserve.

• The Company had share capital of € 103,210,250 at the balance sheet date, consisting of 14,202,040 ordinary voting bearer shares without par value. All shares were fully paid.
• The movements in the Group’s equity are presented here.
• The capital reserves (“share premium and other capital reserves”) consist of share premium (i. e., additional paid-in capital) and of reserves resulting from the reorganisation of companies. The capital reserves remained unchanged in the 2010|11 financial year. Retained earnings consist of the available-for-sale reserve, the cash flow hedge reserve, the effects of consolidation-related foreign currency translation, and accumulated profits/losses.

A key goal of equity management is the maintenance of sufficient equity resources to safeguard the Company’s continuing existence as a going concern and ensure continuity of dividends. Equity bore the following relationship to total capital:

Capital management at AGRANA means the management of equity and of Net debt. By optimis- ing these two measures, the Company seeks to achieve the best possible shareholder returns. In addition to the Equity ratio, the most important control variable is the gearing ratio (Net debt divided by total equity). The total cost of equity and debt capital employed and the risks associated with the different types of capital are continuously monitored.

The sound equity base gives AGRANA strategic flexibility and also demonstrates the Group’s financial stability and independence. In addition to its self-financing ability, AGRANA has access to high, committed credit lines for its overall financing needs.

The approach to capital management was unchanged from the prior year.

Provisions for retirement and termination benefits are measured using the projected unit credit method, taking into account future trends on an actuarial basis. For both the retirement and termination benefit obligations, the plans are defined benefit plans.

For the Austrian companies, the following assumptions were made regarding probable future rates of increase in pay and retirement benefits, and the discount rate:

For foreign entities the assumptions are adjusted to reflect local conditions.

The discount rate for retirement benefit obligations is determined by reference to yields of senior fixed income corporate bonds observable in the financial markets at the balance sheet date. For Austria, the biometric basis for the calculations consists of the version of the computation tables by Pagler & Pagler specific to salaried employees (“AVÖ 2008-P-Rechnungsgrundlagen für die Pensionsversicherung”).

The assumptions for the expected rate of return on external plan assets were as follows:

The rate of return on the plan assets depends on the strategic portfolio structure of the pension fund.

€ 660 thousand (prior year: € 388 thousand) of contributions are expected to be paid into the plan in the subsequent reporting period.

Over the last five years the present values of the defined benefit obligations changed as follows:

Historical information on the retirement benefit obligation

The provisions showed the following movements:

The present value of expected future benefits reflects the benefits to which employees are expected to be entitled based on conditions at the balance sheet date. It includes actuarial gains and losses resulting from the differences between expected risks and actual experience. The provision for direct benefit obligations does not take into account actuarial gains and losses within the corridor allowed by IAS 19 of 10% of the actual amount of the defined benefit obligation.

Similar obligations exist, in particular, in foreign Group companies. They are measured on an actuarial basis and by taking into account future cost trends.

Experience adjustments for the difference between actuarial assumptions made and actual plan experience amounted to a loss of € 1,226 thousand.

The movement in plan assets was as follows:

The plan assets consist primarily of investments in an external pension fund. The investments within this pension fund consisted of 43% bonds, 29% equities and 28% other assets.

Of the total other provisions, € 12,971 thousand (prior year: € 14,073 thousand) were classified as non-current liabilities and € 39,787 thousand (prior year: € 28,592 thousand) were current liabilities.

The provision for reclamation comprises recultivation obligations as well as the emptying of landfills and removal of waste residues. The provisions for staff costs also include the provision for long-service awards. The provisions for uncertain liabilities include, among other items, provisions for litigation risks (€ 1,374 thousand), beet transitional storage costs charged by Vereinigung Österreichischer Rübenbauern (the umbrella organisation of Austrian beet farmers) (€ 9,977 thousand), additional payments related to export prices (€ 1,759 thousand), and other risk provisions (€ 8,264 thousand).

Deferred tax liabilities were attributable to balance sheet items as follows:

Deferred tax assets are detailed under 9.5.